Madurai (PTI): The Madras High Court Bench here has ruled that Educational Loan(EL) being provided by the Banks is only meant for poor and meritorious students who could not pursue their studies due to poverty.
Dismissing a writ petition, filed by Harish Babu of Aruppukottai on Thursday, Justice S Manikumar said students with means to pay tuition fee and obtained average marks in their qualifying examinations can not compel banks to provide EL.
"The object of the scheme will be defeated if banks are permitted to give loan for rich students. Poor and meritorious students will be denied chance of getting financial assistance for pursuing their course," the judge said in his order.
Parents of the petitioner who scored 70 per cent marks in his exams earned Rs 30,000 a month and were in a position to pay the fee, the Judge said.
"As long as the bank managers had taken a fair and reasoned judgement on providing loan,this court could not interfere.The Reserve bank circular also clearly set out the goals of the educational loans", he said.